Presentation on theme: "MANAGING CONTRACTORS PERSPECTIVES FROM THE MHSA. copyright reserved 2003, department, company INTRODUCTION More work is being outsourced to contractors."— Presentation transcript:
copyright reserved 2003, department, company INTRODUCTION More work is being outsourced to contractors. Management of contractors’ compliance with MHSA of paramount importance. H&S compliance of the contractor must be a central selection criterion. MHSA chapter 2 deals with health & safety at mines. Employers, employees and contractors have obligations. Employer must (sec 2): As far as “reasonably practicable” ensure: Mine is designed and equipped to provide safe operation and healthy environment; Mine is operated in way that employees can safely work; Compile annual H&S report
copyright reserved 2003, department, company Appointment of Contractors- 1 Delegation in terms of MHSA: 1) Section 3 MHSA- Employer must appoint qualified Manager Appointment does not relieve Employer from duties Employer must take reasonable steps to ensure performance. 2) Section 4: Employer may entrust its section 2&3 functions to another: Section 2: Employer may appoint persons to design, construct and equip (2(1)(a)) or to commission, operate, maintain and decommission the mine (2(1)(b)); Section 3: Duty to appoint Manager. Employer must provide appointee with the means to perform its duties, and must take reasonable steps to ensure that duties are performed. 3) Section 7(2): Employer may appoint persons. 4) Section 7(4): Manager may appoint persons.
copyright reserved 2003, department, company Appointment of Contractors- 2 The appointment does not relieve Employer from duties. Other functions may not be delegated: Maintain healthy & safe mine environment (sec 5); Supply H&S equipment (sec 6); Assess and respond to risk (sec 11) If person is appointed, notice to Chief Inspector (sec 4) Within 7 days: Name of person appointed; Functions; Names of managers over whom person has control.
copyright reserved 2003, department, company Appointment of Contractors- 3 Tender phase: MHSA provides guidelines for h&s requirements Effective contractual relationships built on prevention, participation, responsibility and accountability. Tender documents must state Employer’s h&s requirements How does contractor comply with MHSA? How will contractor manage the identified risks? Will contractor conduct ongoing assessments and consultations? How does contractor define the responsibilities and accountabilities of the two parties? Contractor’s tender must specify adequate risk control measures, and price is only one of the factors to be considered.
copyright reserved 2003, department, company Contractors’ Duties in the MHSA (1) “Manufacturers” and “suppliers” share liability with employer. Section 21: Any person who Manufactures/repairs/supplies any article for use on a mine must ensure: Article is safe and without risk when used properly; and complies with all MHSA requirements.(21(1)(a) Erects or installs any article for use at a mine must ensure: Nothing in the manner of installation makes it unsafe or creates a risk.(21(1)(b) Designs, manufactures, erects or installs any article must ensure that ergonomic principles are implemented during all phases.(21(1)(c)
copyright reserved 2003, department, company Contractors’ Duties in the MHSA (2) Description of manufacturer or supplier encompasses contractors providing goods and services. Contractor only relieved of duty if: Contractor designs/ manufactures/ repairs obo 3 rd party; and The 3 rd party gives written undertaking to take specified steps that the article will be safe and without risk. Person who designs/ constructs a building or structure must ensure, as far as reasonably practicable, that it is safe & without risk (21(3)) Manufacturer/supplier of hazardous substances must ensure 1)Substance safe and without risk 2)Sufficient information is given about use, risks, precautions.(21(4))
copyright reserved 2003, department, company Contractors’ Duties in the MHSA (3) Section 21 important management tool Employer to insist on proof of H&S compliance from request for quotation- phase. Once contract is awarded, Employer must: Communicate with contractor frequently and openly; Review & monitor contractor’s H&S performance; Refuse entry to contractors that do not comply; Determine and deliver support; Impose H&S standards through notices, assistance and termination of agreement if serious breach takes place. The section also relates to Employer’s duty to Provide a safe working environment; and Take reasonable care for safety of employees and contractors
copyright reserved 2003, department, company Employer’s Duty (1) Employer has duty of care: Must as far as “reasonably practicable” ensure that mine is designed, operated and equipped to provide safe operation and healthy environment; Reasonably practicable having regard to: Severity & scope of hazard/risk State of knowledge available on hazard/risk Availability of means to remove/mitigate Costs & benefits of removing/ mitigating Duty includes the proper management of contractors in terms of the MHSA
copyright reserved 2003, department, company Employer’s Duty (2) Not sufficient for Employer to appoint Contractors and expect compliance: Must take active steps to ensure adherence to Act, such as: Educating Contractors on MHSA; Providing Contractors with means (sec 4(1)); Impose proper standards (MHSA & regulations); Terminate contracts where H&S standards are breached. Remember: Employer has duty towards Employees AND Contractors.
copyright reserved 2003, department, company Role of Contractors As the quest for outsourcing gains momentum, more Contractors are appointed. Some BEE contractors are entering new fields, may need assistance as far as H&S is concerned. Employer must rely on guidelines set out in the MHSA to manage contractors.